A credit card comes in handy when you wish to go shopping or are off for a lovely vacation. It’s convenient to use and comes with so many exciting rewards. Do you want a new credit card but are unsure about your eligibility? Here are the top ways to improve your chances of getting credit card approved.

Pay your bills on time

Did you know that your payment history makes up 35% of your credit score? This makes it the most important factor to get a credit card. If you miss a payment, it is usually not reported to the credit bureau unless it is 30 days late. But even one missed payment can affect your CIBIL score. So, try your best to pay your bills on time (by their due dates) to maintain a good credit score. This goes not only for credit card bills but also payments for monthly utilities (like electricity), rent, car loans, home loans, mobile phones and more. If you struggle to remember all your due dates, initiate autopay or auto-debit to automatically deduct the payment amounts from your account.

In case, you cannot pay a credit card bill in full on time, paying at least the minimum amount can help keep your account in good standing.

Ensure that all on-time bill payments are reported to the credit bureau so that they are recorded on your credit report which a lender will assess.

Show some cash flow or employment

A card issuing company or bank also looks at your income level to determine your ability to repay. You need to show proof of verified income. The income proofs to be submitted depend on the bank or card issuer. If you have lost a job but have other income streams, you can submit income proof of those to apply for a credit card online.

Check your credit score

Your credit score helps the card issuing company determine your creditworthiness, which means your ability to handle credit responsibly. So, check your credit score before you apply for a credit card online. This can help you know which credit cards you would qualify for. This way you can avoid any hard inquiry into your credit history, which can have a significant impact on your score.

Check your debt-to-income (DTI) ratio

This ratio compares your monthly debt to your gross monthly income. A card issuer checks this ratio to evaluate your ability to handle present debts and your potential to manage new debts. A low DTI ratio means that you are balancing your income and debt well and can afford further debt comfortably. This prompts the company or bank to trust you with a new credit card. Therefore, note your DTI ratio to apply for credit.

Correct mistakes on your credit report

Before you apply for a new credit card online, order your credit report from the credit bureau. Check this report for any of the following errors:

• Spelling errors in your personal details
• Bills incorrectly reported as delinquent or late
• Wrong credit limits
• Negative reports that are more than 7 years old
• Incorrect account balances

Correcting these inaccuracies is crucial to avoid rejection of your card application. You can dispute the errors with the credit bureau, or the lender/creditor associated with the inaccuracy by submitting a letter explaining the mistakes, along with supporting documents.

Apply for a credit card against FD

Lastly, you can also opt for a credit card on your fixed deposit, irrespective of your CIBIL score. After getting the card, remember to use it responsibly, like paying its bills on time every month and maintaining a consistent spending pattern to boost your credit score.

It’s easy to qualify for this kind of a credit card since you don’t need to have any credit history or a high credit score. For instance, Kotak811 offers its credit card against a fixed deposit of ₹5,000 only, for a minimum tenure of just 6 months! Here, your FD amount acts as a collateral for the card, and 75%-85% of your fixed deposit is considered as the card’s credit limit.

Take these initiatives before going for a new card. Once you qualify, you can apply online for the credit card to enjoy speedy approval and start using it right away to meet all your shopping needs!

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